Tesla CEO Elon Musk has lost his bid to get his astronomical pay package valued at over $100 billion reinstated after a Delaware judge deemed the compensation plan “deeply flawed” due to Musk’s control over Tesla and its board.
In June, shareholders voted in favor of reinstating the plan, but Judge Kathaleen McCormick refused to allow it, citing concerns that such an outcome would lead to “interminable” lawsuits. The decision is a significant blow to Musk, who has repeatedly criticized the judge.
As part of the original agreement, Musk was required to hit specific company performance milestones worth up to $56 billion. However, with Tesla’s value soaring, the payout now stands at nearly twice that amount. Despite this, Musk still holds nearly $150 billion in Tesla stock, making him one of the richest men in the world.
Musk faces a long road ahead if he wants to change the ruling, as it would require passing new legislation through Congress. The decision is another sign that even billionaires are not above the law, and Musk will have to continue trying to amass wealth through Tesla’s stock.
Source: https://futurism.com/the-byte/elon-musk-tesla-compensation-lost-bid